PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩390 per share · Prices as of the 2026-10-02 close
The core BMW dealership business held steady while the BYD unit (DT Networks) turned profitable to help defend earnings, but the 2024 net loss precedent and tax/legal risks remain overhangs.
2025 consolidated revenue reached KRW 2.55tn with operating profit of KRW 40.8bn, and net income attributable to owners swung from loss to profit year over year.
In H1 2026 the BYD business unit (subsidiary DT Networks) posted revenue of KRW 144.9bn and operating profit of KRW 4.3bn, its first profitable half since inception.
Q1 2026 results absorbed a one-off additional tax charge from a 2020-2024 integrated tax audit, leaving net income roughly at breakeven.
The company ended its lower-margin Jaguar Land Rover business (subsidiary British Auto) at end-June 2026, restructuring its portfolio.
Under a three-year shareholder-return commitment, the company has pledged to maintain per-share dividends at or above the prior year's level annually.
Deutsch Motors' core business is its BMW authorized dealership operation, running multiple showrooms centered on the Gangnam area of Seoul. It has recently renovated its Daechi and Hannam showrooms under BMW's 'Retail Next' concept to enhance the premium customer experience.
As a new growth driver, subsidiary DT Networks handles domestic sales of BYD, the world's largest EV maker, and is expanding its contribution to revenue as the model lineup grows.
The company also pursues a multi-brand strategy, expanding its dealer network to include supercar brands such as Lamborghini, Aston Martin, and McLaren. Its used-car segment operates through the integrated online-offline platform Deutsch Auto World, alongside related automotive financing services.
In contrast, the lower-margin Jaguar Land Rover business under subsidiary British Auto ceased operations at end-June 2026 as part of a portfolio restructuring. In Korea's import car market, BMW is reported to maintain its number one position, benefiting from rising demand for premium vehicles and network expansion.
The company is also pursuing a strategy of expanding its share of the import-car financing market through its dealer partnerships.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩654.9B | ₩13.7B | 2.1% |
| 2025Q3 | ₩675.5B | ₩6.3B | 0.9% |
| 2025Q4 | ₩640.5B | ₩12.8B | 2.0% |
| 2026Q1 | ₩637.4B | ₩10.4B | 1.6% |
| 2026Q2 | ₩710.9B | ₩12.9B | 1.8% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2T | ₩64.8B | ₩36.4B | 3.3% | 10.2% | 221.4% |
| 2023 | ₩2.2T | ₩42.8B | ₩11.5B | 1.9% | 2.8% | 263.7% |
| 2024 | ₩2.2T | ₩25B | -₩4.9B | 1.2% | −1.3% | 311.8% |
| 2025 | ₩2.5T | ₩40.8B | ₩3.4B | 1.6% | 0.9% | 336.3% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-08-23
Consolidated 2025 revenue reached KRW 2.549tn, up sharply from KRW 2.168tn in 2024, while operating profit expanded to KRW 40.8bn from KRW 25.0bn a year earlier. Notably, net income attributable to owners swung from a loss of KRW 4.89bn in 2024 to a profit of KRW 3.42bn in 2025.
Compared with 2023 (operating profit KRW 42.8bn, owners' net income KRW 11.5bn), profit levels still appear to be in a recovery phase, and remain below the 2022 level of KRW 64.8bn operating profit and a 3.3% operating margin.
Looking at recent quarters, owners' net income was modestly negative in both Q3 2025 (revenue KRW 675.5bn, operating profit KRW 6.3bn, net loss of KRW 143mn) and Q4 2025 (revenue KRW 640.5bn, operating profit KRW 12.8bn, net loss of KRW 312mn).
In Q1 2026, revenue was KRW 637.4bn and operating profit KRW 10.4bn, but owners' net income was roughly at breakeven at negative KRW 3.9mn, reflecting the one-off recognition of additional tax payable from a 2020-2024 integrated tax audit.
In Q2 2026, revenue rose to KRW 710.9bn with operating profit of KRW 12.9bn and owners' net income of KRW 2.71bn, showing improvement as the tax-related drag faded.
On a first-half cumulative basis, operating profit is understood to have risen year over year, a result attributed to the BYD business turning profitable alongside the wind-down of a lower-margin unit.
Cash flow from operations improved markedly to KRW 181.5bn in 2025 from negative KRW 82.0bn in 2024, while the debt ratio rose to 336.3% in 2025 from 221.4% in 2022.
Korea's import-car market appears to be in a phase of intensifying brand competition alongside a slow recovery in consumer sentiment.
As electrification accelerates and Chinese EV brands expand their entry into the domestic market, the pace at which existing dealers restructure their business portfolios has become an important competitive variable.
BMW is reported to maintain the top sales position in Korea's import-car market, and rising demand for premium vehicles combined with network expansion is supporting Deutsch Motors' merchandise and service revenue base.
At the same time, in the auto-finance market, dealers that secured early partnerships appear to be expanding their market share.
The used-car market is understood to maintain a fairly steady annual transaction volume of around 3.5 million units, with continued competition among integrated online-offline platform operators.
Given the inherently thin margin structure of the dealership business, diversifying brand portfolios and securing new growth businesses such as EV dealerships appear to be key factors differentiating individual companies' ability to defend profitability.
The company has stated it plans to continue adjusting its brand portfolio and expanding EV sales in the second half, emphasizing profitability management over volume growth given intensified competition in the import-car market.
Management has indicated a direction of completing a sustainable business structure within the year and focusing on securing profitability.
The BYD business, which ramped up from 2025, continues to expand its model lineup, and the CEO has characterized 2026 as the year when BYD's performance becomes fully visible alongside company-wide structural improvement.
The wind-down of the lower-margin Jaguar Land Rover segment (British Auto) at end-June 2026 is understood to mark a partial completion of the portfolio restructuring. Investment in enhancing the premium customer experience continues, including the Gangnam Daechi and Hannam showroom renovations.
On shareholder returns, the company continues its commitment under the March 2024 value-up plan to maintain per-share dividends at or above the prior year's level each year, and it has reaffirmed its intention to pursue a stable dividend policy in 2026 as well.
The current share price trades at a relatively low multiple of net asset value, sitting in a range where the market assigns a smaller value relative to the company's book equity.
On the earnings side, the swing from a net loss in 2024 to a profit in 2025, followed by continued improvement after the tax-related drag faded in H1 2026, means that historical earnings volatility should be factored into any valuation interpretation.
Regarding dividends, it is worth noting that the company continues its commitment to maintain per-share dividends at or above the prior year's level annually.
Excluding periods when one-off gains from Deutsch Auto World unit sales were recognized, the quality of earnings appears to be converging more closely toward the underlying business's core profitability, which could serve as a reference point for future earnings interpretation.
Ultimately, because the thin margin structure inherent to the dealership business and the growing contribution from the new BYD growth segment operate simultaneously, valuation assessments may vary depending on the balance between these two factors.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-08-23
Subsidiary DT Networks posted its first profitable half since inception in H1 2026, with revenue of KRW 144.9bn and operating profit of KRW 4.3bn. A structure is forming in which the new EV growth business offsets the slowdown in the internal-combustion vehicle market. Continued expansion of the model lineup leaves room for its revenue contribution to gradually increase.
Ending the lower-margin Jaguar Land Rover business (British Auto) at end-June 2026 improved the overall business structure. The company is diversifying its sales network through a multi-brand strategy that includes supercar brands. As a result, H1 2026 operating profit is understood to have risen year over year.
Under the value-up plan announced in March 2024, the company continues its commitment to keep per-share dividends at or above the prior year's level each year. It has explicitly stated it intends to maintain its dividend policy regardless of a given year's earnings performance. It has reaffirmed its intention to continue a stable dividend policy in 2026.
Price competition among brands is understood to be intensifying, with a slow recovery in consumer sentiment. Expanding entry of Chinese EV brands into the domestic market is raising competitive intensity for existing dealers. This industry backdrop is cited as a factor behind the year-over-year decline in Q2 2026 operating profit.
Amid the dealership business's inherently thin operating margin structure, owners' net income recorded a loss in 2024. Owners' net income was also modestly negative in both Q3 and Q4 2025. Quarterly earnings volatility could continue going forward depending on sales mix shifts or one-off costs.
In Q1 2026, an additional tax payable from a 2020-2024 integrated tax audit was recognized in full as a one-off expense, leaving net income essentially at breakeven. The company stated this resolved tax-related financial uncertainty, but the possibility of similar tax risk recurring cannot be ruled out.
Separately, an investigation related to a long-standing stock-related controversy involving the company is reported to still be ongoing, warranting continued monitoring of related news flow.
Intensifying price competition among import brands and sluggish consumer sentiment could pressure revenue and margins. As electrification accelerates, expanding entry by Chinese EV brands could reshape the competitive landscape.
Given the structure's high revenue dependence on a single brand (BMW), earnings could be sensitive to changes in that brand's domestic policies.
Similar to the additional tax payable recognized in Q1 2026 from an integrated tax audit, further one-off tax or regulatory costs could recur. Changes in regulations related to auto finance and dealership operations are also variables that could affect the business structure.
The debt ratio's rise from 221.4% in 2022 to 336.3% in 2025 is a point warranting attention from a financial leverage management perspective.
An investigation, including by a special counsel, into past stock-related allegations involving the company is reported to still be ongoing. Even though such legal issues are not directly tied to financial performance, they can affect market perception and governance risk assessments. Continued monitoring of the investigation's progress and outcome is warranted.
Expected timing of Q3 2026 provisional earnings disclosure; worth checking whether the BYD (DT Networks) segment's growth continues and how margins are defended amid a slowing import-car market.
Timing when the annual cash dividend decision is typically disclosed; it will show whether the three-year commitment to keep per-share dividends at or above the prior year's level is being fulfilled.
Following the wind-down of the British Auto business, it is worth checking for further brand portfolio adjustments, such as new brand additions or further divestitures.
The progress and outcome of the special counsel investigation into past stock-related allegations involving the company should be continuously monitored.
Deutsch Motors continues to post improved profitability in H1 2026 following its 2025 return to profit, built on its core BMW dealership business alongside the profit turnaround at the new-growth BYD unit and the pruning of lower-margin operations.
However, the earnings volatility inherent to the dealership business remains observable, as shown by the 2024 net loss precedent and modest losses in Q3-Q4 2025 and Q1 2026.
The possibility of one-off costs recurring, such as the additional tax payable recognized in Q1 2026 from a tax audit, along with legal risk tied to past stock-related allegations involving the company, are factors outside financial metrics that warrant consideration.
Intensifying competition in the import-car market and the pace of electrification are structural industry factors that will shape future performance. On shareholder returns, it is worth noting that the commitment to maintain dividends at or above the prior year's level continues.
Overall, business restructuring progress, the growing contribution of new growth segments, and how tax and legal risks are resolved appear likely to jointly shape future earnings and market assessment.
Report written 2026-09-05 · Data as of 2026-09-04
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